{ "docId": "019dd923-622c-750b-8b9a-21918ac10c17", "docSlug": "f3db2294dcf9", "documentTitle": "Harmony Biosciences (HRMY)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2023-03-28 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 358, "pageCount": 366, "prevPage": 357, "nextPage": 359, "slideType": "testimonial", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses direct quotes from former employees to validate the thesis of market saturation and internal company struggles.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-21918ac10c17/358", "deckHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-21918ac10c17#slide-358", "components": [ { "bbox": null, "kind": "callout", "text": "They universally painted a picture of a tiny market that Harmony quickly saturated, with the trend hitting a wall 2 years after the 2019 launch.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64d1-73a9-abc1-4f0524f7befe", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "paragraph", "text": "We interviewed 14 ex-employees, including 8 territory sales managers. A significant number left relatively recently and indicated they receive general market color from former colleagues. They universally painted a picture of a tiny market that Harmony quickly saturated, with the trend hitting a wall 2 years after the 2019 launch. They indicate the sales difficulties worsened in mid-2022 and accelerated recently, as regions ran out of potential patients or doctors failed to see clinical efficacy, and that large numbers of previously successful reps have been placed on PIP’s – Performance Improvement Plans. One ex-sales manager stated that “morale amongst the salesforce is really low...it’s not a happy environment...it’s a pretty sour environment,” and indicated increasing management pressure: “there’s certainly more pressure...I’ve heard that they are struggling.” A second used his territory as an example, stating that his “volume of scripts was steady” but maxed out in mid to late 2021, as there’s a limited number of patients and many don’t want to switch medications, in addition to insurer pressure on doctors.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "11a8d165-0fd7-4507-9aa2-aaff78d2fbc3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.07, "y": 0.7 }, "kind": "quote", "text": "Some regions already peaked in terms of prescriptions in late 2021\nA: “The volume of scripts was steady. Like I said, I had built up a pretty good base on physicians that I could get the 15 prescriptions per quarter. And the territory itself just should have—I don’t know if it has—but should have been able to sustain that. There’s no large amount of patients with excessive daytime sleepiness or cataplexy, and a lot of patients don’t want to convert from a competitor medication to use ours. And then insurance, like I mentioned. So, it’s pretty steady from when I was there. I increased it probably—when I first came in the territory, I was getting anywhere from two to five scripts, and then I gradually built it up to 10 to 15. I think that’s probably where it will probably max out.\nQ: “When did it max out in your territory? What was the point?”\nA: “Probably the second or third quarter of 2021.” – Ex-Harmony territory manager for a large region Florida and another state", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6ab49a8b-679d-4a57-8190-f08461cae165", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.86, "x": 0.07, "y": 0.55 }, "kind": "quote", "text": "“Morale amongst the salesforce is really low”; “heard that they are struggling”\n“I will say, I think for what it’s worth, morale amongst the salesforce is really low...It’s not a happy environment. It’s a pretty sour environment...I think there’s certainly more pressure—it started to come down from what I’ve heard that they are struggling.” – Ex-Harmony territory manager for a large region, previously at Jazz Pharmaceuticals", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b1c3c2dd-48e9-408a-8a9e-4326ddd87b85", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Morale amongst the salesforce is really low...it's not a happy environment. It's a pretty sour environment...I think there's certainly more pressure...I've heard that they are struggling.\" — Ex-Harmony territory manager for a large region, previously at Jazz Pharmaceuticals", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64d1-73a9-abc1-5136c2378d1b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.07, "y": 0.95 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "02958e15-d011-44e6-9ea7-0288e72943b5", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }